Massachusetts recyclers grapple with effects of China ban

Friday

Some recycling processors in Massachusetts are beginning to see effects from a policy decision made on the other side of the world.

Some recycling processors in Massachusetts are beginning to see effects from a policy decision made on the other side of the world.

“Prices of mixed paper and cardboard have dropped significantly, and that has increased the cost of recycling within the United States,” explained Bob Cappadona, vice president of recycling for Casella Recycling, one of the largest recycling processors in the Northeast.

China, a major importer of scrap paper and plastic from around the world, announced in July that is was preparing to ban the import of certain types of used plastics by 2018 and put new restrictions on the types of scrap paper allowed into the country. The Chinese government told the World Trade Organization the new policies were intended to improve environmental conditions within the country.

Massachusetts environmental officials and recycling companies say residents should continue to recycle, but they’re also taking the opportunity to remind people that keeping inappropriate materials out of curbside bins helps keep recycling costs down for everyone.

In recent decades, cargo ships have routinely hauled billions of dollars worth of scrap materials to China, where Chinese mills purchase the materials, then use the recycled scrap in consumer products that are sold abroad. Due to the trade deficit between the U.S. and Chinese markets, cargo ships that bring Chinese goods to the United States have traditionally offered discounted rates to transport bales of processed recyclables on their return trips to China.

“China historically has been a very large importer of recyclables from all over the world, including the United States, and they turn those into products they ship back to other countries,” said Greg Cooper, director of business compliance and recycling for the Massachusetts Department of Environmental Protection. “According to some estimates, 40 percent of all recycling materials go to China.”

But that trade has evaporated recently after the Chinese government announced its new environmental standards.

Casella Recycling, which is headquartered in Rutland, Vt., processes 800,000 tons of materials each year, including 230,000 out of its Boston facility and 90,000 out of a facility in Auburn. Casella, which processes materials from approximately 100 Massachusetts cities and towns, has historically exported about 25 percent of its materials to China.

“Over the past couple months, material within the U.S. has now had to go to other countries such as Vietnam, Korea, India and Indonesia,” Cappadona said. “They have fiber mills, but not the capacity China has.”

The result has led to a worldwide drop in demand for the materials, sending prices into a tailspin.

In addition to banning the import of materials, the Chinese government also announced new restrictions on the amount of “contaminants,” or non-recyclable material, present in each bale of recyclables allowed into the country. If the Chinese government sticks with its new restrictions, American recycling processors will need to invest in new machinery to do a better job of filtering out materials that don’t belong. It would also likely reduce the speed at which material could be processed, potentially increasing costs.

Cooper said it’s too soon to tell what the long-term effects will be, or how increased recycling costs could potentially be passed on to municipal curbside recycling programs. China previously tightened standards on scrap imports in 2013, but the effects were short-lived, Cooper said. That experience has raised some doubt as to whether China will permanently stick by its new policy.

In the meantime, MassDEP and recycling processors are encouraging residents to be more careful about the types of materials they put in their curbside bins. It’s not uncommon for people to mix trash into their recycling bins, or mistakenly include items such as plastic bags and plastic silverware, which cannot be processed by most facilities that take in curbside materials.

While the program has been in the works for awhile, the timing is fortuitous given China’s new restrictions, Cooper said.

MassDEP is preparing to offer grants for cities and towns to launch local curbside recycling educational programs. Keeping contaminants and inappropriate materials out of recycling bins can go a long way in reducing recycling costs throughout the whole system, Cooper said.

“If there’s any message, it’s that you should continue recycling, but check your local municipal website to be clear about what they want you to put in the recycling bin so you can do it right.”